Implementation of New Overtime Rule Suspended

Posted By Buckley Beal, LLP

A Texas Court has granted a preliminary injunction blocking the implementation of several key features of the overtime rule set to take effect on December 1st. The new white collar exemption rule raised the salary threshold from $23,660 annually to $47,476. The increase would mean that workers would have to make more than $913/week to be considered exempt, and potentially not entitled to overtime pay. With the higher threshold, millions more workers could have potentially brought home extra pay beginning this holiday season.

With the rule now on hold, what does this mean for workers and employers?

First, a large percentage of employers have already made plans to implement the new rule. Although it has been temporarily suspended, no requirements exist that employers cancel or reverse changes that they may have implemented. Where employers have given raises to ensure an employee earns more than the salary threshold, it would be bad for morale and potentially lead to contract violations if employers were to withdraw those raises. On the other hand, more flexibility may exist for employers who have not yet implemented the changes. The Texas ruling is not definitive, and it is not clear what steps the Department of Labor will take next in response.

For more information, or if you have any questions concerning how the new ruling will affect you, or any other wage and hour questions, please contact the experienced Georgia FLSA attorneys at Buckley Beal, LLP for an immediate consultation.